CNXT - Sector: Technology --- Industry: Semiconductors

[ScottishTrader]

Well, looks like hanging in there was the right move - CNXT showed positive earnings, beating street estimates of .01/share, and posting .02/share, on above expected revenues. The CC was very upbeat and analysts were quite positive on the company's performance.  Looks like the turnaround is well and truely in place

http://biz.yahoo.com/bw/060125/20060125005896.html?.v=1

CNXT is currently trading around 3.55 pre-market, up 8-9%.  I think that this has convinced me that I'm gonna stay in this one for a while, at least till I see it push $4 and close the big gap - we always knew it was gonna happen.  Just a shame I was away and missed the buy on the retrace, now that would have been a nice trade

[ScottishTrader]

CNXT did not fare quite as well as hoped, pulling back and battling with the 3.50 level most of the day, closing around there. And it has sold off quite a bit in the aftermarket.  But the volume was huge today - almost 50,000,000, and their report was very positive. It would not be nice for it to close below 3.40.  However, I expect the continuation of this positive move over the next week at least.

[ScottishTrader]

Chart: 

[setravis]

Well looks like I'm the only one in on CNXT for this earnings play.

I still holding ScottishTrader ! Just haven't been on the website the las week to ten days.
Took a little time of..... Rock on CNXT....

[ScottishTrader]

Well I sold out of CNXT on Friday - I only bought back in recently around 3.23, and I didn't like Friday's action at all - I really didn't want to see a profit turn into a loss.   Of course, just after I sold it dipped, bottomed and then rallied into the close.  So is currrently sitting up from my sale point.

However, the long read candle after Thursday's spinning top breakout suggests failure to me, as does the morph of the ascending triangle into a rising wedge.  CNXT could rally today and start pushing strong, but I would like to see clear evidence of a sustained breakout above current trading levels before I play it, and I don't mind paying a bit more to get it.

Good luck with it Setravis, If you are still in from the low $2, then it is a much more comfortable position to sit through, and I know you will protect your profits if need be.

[setravis]

Press Release Source: Conexant Systems, Inc.


Conexant Wi-Fi and Modem Technology Enables New LG-Nortel Videophone
Monday January 30, 8:00 am ET 
Major Operators Currently Deploying Videophones in Europe


NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jan. 30, 2006--Conexant Systems, Inc. (NASDAQ:CNXT - News), a worldwide leader in semiconductor solutions for broadband communications and the digital home, today announced that LG-Nortel Co. Ltd., a key provider of leading-edge communications and networking solutions in the wireline, optical, wireless and enterprise markets, has based their new Wi-Fi videophones on the company's wireless networking 802.11g and V.92 dial-up modem technology. LG-Nortel's LVP videophones allow individuals to make video phone calls using Wi-Fi to connect to a broadband access network, or over the public switched telephone line (PSTN). LG-Nortel's LVP series phones are currently being deployed by major operators in Europe.


"LG-Nortel's videophone illustrates how newer technologies such as Wi-Fi are converging in innovative products for the digital home," said Chee Kwan, vice president and general manager of Conexant's Wireless Networking business. "Demand for devices with embedded wireless networking capabilities is increasing in all geographies. We will leverage our product portfolio and the most advanced standards-based technologies to deliver solutions for this growing market segment."

"Our customers depend on us for high-quality, reliable products that help them retain and attract new subscribers, and Conexant's expertise in wireless and dial-up modem technologies helps us meet their requirements," said KP Choi, leader of the CPE Export team for LG-Nortel. "Equally important, their strong design support and system-level knowledge allows us to launch products more quickly and cost-effectively, which provides us with a competitive edge."

About the LVP Series Videophones

LG-Nortel's LVP series videophones have a small camera attached to the upper part of a 3.5-inch liquid crystal display to capture video of the caller. The video is transmitted using 802.11g Wi-Fi or Bluetooth technology to the Internet over a broadband or dial-up modem connection. The handset/speaker phone also features an alphanumeric keypad that can be used to send e-mail messages, and a Web browser that allows users to surf the Internet. To maximize flexibility and provide a back-up communications channel in case of a power outage, an integrated V.92 modem connection allows users to transmit video phone calls over existing copper phone lines.

Conexant is a pioneer in wireless networking and offers an extensive suite of solutions including IEEE 802.11a/b/g and dual-band (2.4 and 5 GHz) chipsets, firmware, software, drivers and reference designs. The company is also developing 802.11n solutions for high-performance, embedded applications. These Wi-Fi solutions are used by the world's leading telecom, networking and computer companies in a wide range of products including access points/routers, client cards, desktops, notebooks, PDAs, digital cameras, MP3 players and other hand-held networking appliances. They are available as standalone solutions or offered in conjunction with Conexant's, DSL and cable modem semiconductor system solutions, voice over IP (VoIP) chipsets, and home network processors.

About Conexant

Conexant's innovative semiconductor solutions are driving broadband communications and digital home networks worldwide. The company has leveraged its expertise and leadership position in modem technologies to enable more Internet connections than all of its competitors combined, and continues to develop highly integrated silicon solutions for broadband data and media processing networks.

Key products include client-side xDSL and cable modem solutions, home network processors, broadcast video encoders and decoders, digital set-top box components and systems solutions, VoIP chips, and dial-up modems. Conexant's suite of networking components includes a leadership portfolio of IEEE 802.11a/b/g-compliant WLAN chipsets, software and reference designs, as well as solutions for applications based on HomePlug® and HomePNA(TM). The company also offers a complete line of asymmetric and symmetric DSL central office solutions, which are used by service providers worldwide to deliver broadband data, voice, and video over copper telephone lines.

Conexant is a fabless semiconductor company with an annual revenue run-rate in excess of $900 million. The company has approximately 2,500 employees worldwide, and is headquartered in Newport Beach, Calif. To learn more, please visit www.conexant.com.

About LG-Nortel

LG-Nortel Co. Ltd (http://www.lg-nortel.com) engages in the development and marketing of video, voice, data and telecommunication infrastructure business worldwide. The company has been supplying its cutting edge telecommunication solutions to the global leading carriers, operators and strategic partners more than 50 countries.

It is strongly focused on three major business sectors to provide total solutions for its customers: Wireless (WCDMA, CDMA, WiMAX), Wireline & Optical and Residential & Enterprise (KTS/PBX & CPE Terminals-Videophone phones, IP terminals and DECT) LG-Nortel offers its products and services through distributors and partners worldwide and also provides infrastructure business directly to the carriers/operators.

LG-Nortel is a joint venture between global giants in communications, LG Electronics Inc. and Nortel Network, founded in November 2005. Company aims to become a global leading communications company by creating greater synergy based on the combined R&D capability and global competitiveness of LG Electronics and Nortel Networks. For more information please visit http://lg-nortel.com.

Conexant Safe Harbor

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Conexant or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

These risks and uncertainties include, but are not limited to: general economic and political conditions and conditions in the markets we address; the substantial losses the company has incurred recently; the cyclical nature of the semiconductor industry and the markets addressed by the company's and its customers' products; continuing volatility in the technology sector and the semiconductor industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions and product quality; the company's ability to anticipate trends and develop products for which there will be market demand; the availability of manufacturing capacity; pricing pressures and other competitive factors; changes in product mix; product obsolescence; the ability of our customers to manage inventory; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; the uncertainties of litigation and the demands it may place on the time and attention of company management; and possible disruptions in commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings.

The forward-looking statements are made only as of the date hereof. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.


Contact:
Conexant Systems, Inc.
Gwen Carlson (Editorial), 949-483-7363

--------------------------------------------------------------------------------
Source: Conexant Systems, Inc.

[Lucas Scott]

CNXT back in play? Chart seems to be setting up that way. The hammer close on Friday was bullish.

[Melf Elf]

The hammer close on Friday was bullish.

Luke,

That hammer does look like the stock wants to rally, but I wouldn't want to see Friday's low of 3.18 get taken out.

1. All 3 bullish targets have MADE.

2. Friday's low was the fourth data point of a possible Bear Flag.

3. Last week, the Kijun-Sen (solid green line), at 3.39, was resistance.

4. Basis the weekly chart, the last 3 candlesticks were:
   a. Doji-Star Hangman
   b. Inverted Hangman
   c. Hangman

EDIT: Corrected Chart Inserted

[Melf Elf]

CNXT rallied to 3.37 yesterday, just below the Tenkan-Sen (bold green line) at 3.39, which was resistance last week. 

The bottom of the Bear Flag comes in today at 3.19.  CNXT is indicated to gap down this morning, on the following news:

U.S. jury rules Conexant unit infringed TI patents
Mon Feb 6, 2006 10:25 PM ET
   
NEW YORK, Feb 6 (Reuters) - Conexant Systems Inc. (CNXT.O: Quote, Profile, Research) on Monday said a federal court jury ruled a Conexant unit wilfully infringed three patents held by Texas Instruments Inc. (TXN.N: Quote, Profile, Research), and awarded TI damages of $112 million.

Conexant said the jury in the U.S. District Court for the District of New Jersey found that GlobespanVirata, a subsidiary of Conexant, infringed patents related to asymmetric digital subscriber line (ADSL) technology.
   

[Melf Elf]

The bottom of the Bear Flag comes in today at 3.19.  CNXT is indicated to gap down this morning, on the following news:

The Bear Flag  target of 2.60 has MADE already, within one penny.  The low so far is 2.61. See chart in last post for the flag.

Math:

High of the Flag: 3.60
Low of the Flag: 3.01

3.60 - 3.01= 0.59 points

The point of the break occurred today on the gap down below the trendline at 3.19.

3.19 - 0.59 = Target 2.60 IN PLAY

I was looking to buy CNXT in a day or so, if the target of 2.60 got MADE.  CNXT is getting a bounce off the 2.61 low, but I decided to leave it alone.  That's too much downside in one day for me.  CNXT #2 on the Percentage Losers list on the NASDAQ, down 22% on a whopping 83 million shares.



CNXT currently is BID 2.67...ASK 2.68

[Lucas Scott]

I'm glad I didn't buy!! I wonder if Cramer will order his sheeple to do a "mon back"

[Melf Elf]

I wonder if Cramer will order his sheeple to do a "mon back"

I think Cramer dissed CNXT a week or two ago, if I remember correctly.   
 
Given yesterday's haircut, it looks as though we only can give CNXT an ignominious  BOYA  until Cramer issues the "mon back," and restores it to full BOOYAH status.

[ScottishTrader]

Might be worth looking for a buy around $2.40???  Man am I glad I sold out for a break-even last week.  Whew

But it did close above key support at 2.68-2.70, will have to see today if this level holds.

[setravis]

CONEXANT SYSTEMS (NasdaqNM:CNXT) Delayed quote data 

Pre-Market (RT-ECN): 2.91  0.21 (+7.78%) Volume @.....200,426

[vic666]

looking real good here...CNXT set to take out $3.30's on Monday and make a push to catch up to JDSU which close at $3.71 on Friday.

I see CNXT (and JDSU for that matter) making a strong push to $5.00 within 1 month from now...the semiconductor industry is very optimistic about demands for chips from the end-customer the rest of this year and demand has actually grown around 7% from last year this time.

chart is looking bullish too, with RSI steadily pushing to the 70 level and MACD just entering positive territory.

good luck!